Even greater savings could be achieved. Updates to existing standards and new standards for other products that can be completed between now and 2015 could net consumers and businesses another $170 billion and reduce pollution even further.

The study by the American Council for an Energy-Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP) finds that existing standards will save 200 quads of energy by 2035, with another 42 quads of savings achievable with new standards. A “quad” is a measure of energy—the U.S. economy uses a total of about 100 quads per year.

“Improving the energy efficiency of everyday products with common-sense standards has proven to be one of the best ways to save consumers and businesses money while protecting the environment and avoiding the need to build expensive new power plants,” said Andrew deLaski, executive director of ASAP, a coalition of consumer, environmental, and efficiency groups. “Standards have been a bipartisan energy policy success story stretching across four decades and five presidencies.”

Existing energy efficiency standards cover about 55 categories of products, ranging from major home appliances like refrigerators to commercial products such as motors and roof-top air conditioners. Initial standards for many of these products were signed into law by President Ronald Reagan in 1987. Since then, Congress and the Department of Energy have repeatedly added new products and updated standards. The study published today examines what more can be done.

“Our research found that a combination of updates for existing standards and first-time standards for products like computers, TV set-top boxes, and street lights would add to the track record of big energy, economic, and environmental benefits achieved by standards,” said Amanda Lowenberger, lead report author and senior research analyst at ACEEE.

According to the report, existing standards reduced U.S. electricity use by 7 percent in 2010. Annual electricity savings from existing standards will increase to 14 percent by 2035 as consumers and businesses purchase new products compliant with the latest standards. New and updated standards that can be completed by 2015 would reduce 2035 electricity use by another 7 percent.

Direct natural gas savings from existing standards will reach 950 trillion BTUs by 2035, or enough to heat about one out of every three natural gas-heated homes. New and updated standards for gas products would add another 240 trillion BTUs in annual gas savings by 2035. New standards would also deliver enormous water savings: more than 430 billion gallons annually by 2035—enough to supply New York City.

“There’s no question standards have made a significant contribution to lowering home utility bills,” said Mel Hall-Crawford, energy projects director for the Consumer Federation of America. “And, there are more savings to be gained through future standards.”

According to the study, a typical household will save about $10,000 between 2010 and 2025 simply by purchasing products compliant with minimum standards. A typical household’s total electric bill over this period would be about 33% higher absent efficiency standards. Although efficient products typically cost more up front, the report found that the cost of more efficient products pays back in lower utility bills within about 3 years, with net benefits outweighing costs by 4 to 1.

“Energy efficiency standards are beneficial on so many levels,” said David Goldstein, co-director of the Natural Resources Defense Council’s energy program. “They help our environment, they help drive innovation and—as this report shows—they help consumers save money with every appliance they plug into their wall sockets.”

According to the report, already existing standards reduced U.S. greenhouse gas emissions by about 200 million metric tons in 2010 and the annual reduction level will grow to 470 million metric tons by 2035, or roughly the output of 120 coal-fired power plants. New and updated standards would reduce 2035 greenhouse gas emissions by another 200 million metric tons, or another 50 coal-fired power plants equivalents.

To assess the potential impact of future standards, the report evaluates 34 products for which new or updated standards could be adopted within the next four years. Products with the biggest potential additional energy savings include electric water heaters, reflector light bulbs, distribution transformers, electric motors, and computers. The largest net economic savings would come from new clothes washer and outdoor lighting standards.

The Appliance Standards Awareness Project (ASAP) is dedicated to increasing awareness of and support for cost-effective appliance and equipment efficiency standards. Founded in 1999, ASAP is led by a steering committee that includes representatives from the environmental community, consumer groups, utilities, and state government.

The American Council for an Energy-Efficient Economy acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors.

ACEEE Summer Study on Energy Efficiency
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Overview / Mission

The American Council for an Energy-Efficient Economy (ACEEE), a nonprofit, 501(c)(3) organization, acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors. We believe that the United States can harness the full potential of energy efficiency to achieve greater economic prosperity, energy security, and environmental protection for all its people.